The corruption cases databases are a product of the staff of the International Bank for Reconstruction and Development / The World Bank. It is intended for general information purposes only. The findings, interpretations, and conclusions expressed in the Database do not necessarily reflect the views of the Executive Directors of The World Bank or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. Neither the World Bank Group nor its officers or employees shall be liable for any losses that may result directly or indirectly from the use of or reliance upon such information.
International Business Machines (IBM) / 2001 Settlement (Argentina)
According to the US Securities and Exchange Commission's Litigation Release, "Without admitting or denying the allegations in the complaint, IBM consented to the entry of a judgment ordering IBM to pay a $300,000 penalty. The Order finds that IBM violated Section 13(b)(2)(A) of the Exchange Act in connection with a $250 million contract to integrate and modernize the computer system of a commercial bank owned by the Argentine government. According to the Order, certain former senior management of IBM-Argentina, S.A. ("IBM-Argentina"), a wholly-owned subsidiary of IBM, caused IBM-Argentina to enter into a subcontract with Capacitacion Y Computacion Rural, S.A. ("CCR"), and money paid to CCR by IBM-Argentina in connection with the subcontract was apparently subsequently paid by CCR to certain bank officials. Specifically, the Order finds that, during 1994 and 1995, IBM-Argentina paid CCR approximately $22 million under the subcontract, of which at least $4.5 million was transferred to several bank directors by CCR." (Source: Securities and Exchange Commission, Litigation Release No. 16839 / December 21, 2000, SEC v. International Business Machines Corporation, Case No. 1:00-cv-03040-JR (D.D.C.), "SEC Settles Foreign Corrupt Practices Act Case against IBM.")
Securities and Exchange Commission v. International Business Machines Corporation, Case No. 00-cv-3040-JR (D.D.C. January 9 2001), Final Judgment. Background details in SEC Administrative Proceeding File No. 3-10397 and Litigation Release No. 16839 / December 21, 20000, "SEC Settles Foreign Corrupt Practices Act Case against IBM," accessed at http://www.sec.gov/litigation/litreleases/lr16839.htm; Complaint filed December 21, 2000, accessed at http://fcpa.shearman.com/files/d0c/d0c38e4dd02cb168e08b10bfeb943905.pdf?i=213d33ba5837e54f76ad2217c8d46f7f and Final Judgment filed January 9, 2001, at http://fcpa.shearman.com/files/f6c/f6c4f8147e24d085fe53df61f218f475.pdf?i=a6ed58903e4eafab05288d16d4de56b7.
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